Question: Gateway sold computers and related products by mail, Internet, and telephone. With each PC , Gateway sent a Standard Terms and Conditions Agreement including a
Gateway sold computers and related products by mail, Internet, and telephone. With each PC Gateway sent a Standard Terms and Conditions Agreement including a Dispute Resolution clause, stating that any dispute would be settled by arbitration under the rules of the International Chamber of Commerce ICC in Chicago. Several buyers of computers and software from Gateway sued for breach of contract and breach of warranty, contending the company falsely stated that technical support for products was available when in fact, the plaintiffs claimed, it was almost impossible to get technical support by phone.
The trial court dismissed the suit, holding that the parties had to go to arbitration. The plaintiffs appealed, contending that the arbitration clause violated UCC as an unconscionable contract because ICC rules require payment of a $ advance fee when a claim is filed, of which $ is nonrefundable regardless of outcome, and each plaintiff would have to bear the cost of travel to Chicago. These expenses are greater than the value of most of the products purchased.
Answer the following in detail: Is the arbitration clause valid under the UCC?
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